Fibonacci Ratios

Golden Ratio is 0.618

Wave 3 to wave 1 1, 1.618, 2.618, 4.236...

Wave 5 to wave 1 0.5, 0.618, 1, 1.27, 1.382, 1.618

Common retrace ratios for corrections are

Wave 2 0.616, 0.786 (sharp and deep)

Wave 4 0.382, 0.5 (shallow)

B waves 0.5, 0.618, 1.00, 1.27 (less consistent and tend to vary in length more)

Top 10 Tips for Applying Elliott Wave Theory Profitably

1. Always observe the Elliott Wave rules

2. Always consider the Elliott Wave guidelines
3. Always be quick to accept when your analysis is wrong
4. Always use stops losses
5. Always consider the alternative wave counts
6. Always use Fibonacci in conjunction with your Elliott Wave analysis
7. Always consider a potential trade entry in multiple time frames before entering
8. Always remember which time frame it is that you are trading in
9. Always have a trading plan
10. Always try to gauge current sentiment to evaluate whether it confirms the analysis

Elliott isolated thirteen patterns of movement, or "waves," that recur in market price data
and are repetitive in form,
The Five Wave Pattern
Basic rhythm or pattern of five waves up and three waves down to form a complete cycle of eight
waves.